Tag: Redcentric

MSP Redcentric reported a swing to fiscal 2023 pretax loss as operating expenses more than doubled and declared a flat dividend payout.

The IT managed-services provider said that pretax loss for the year ended March 31 was £12.5 million compared with a profit of £5.5 million in fiscal 2022.

The company reported an operating expenditure increase to £9.9 million from £53.0 million a year ago. Revenue, however, jumped to £141.7 million from £93.3 million.

Adjusted earnings before interest, taxes, depreciation and amortisation–which strips out exceptional and other one-off items–rose 3.3 per cent to £24.5 million. Read more…

MSP says it has up to £100 million to spend on M&A after securing the cash from a syndicate of banks.

The loan, which was raised through a syndicate of four banks, will give Redcentric £80m in committed funds as well as an additional £20m “should we need it”.

Bolt-on acquisitions for specific capabilities will continue to be sought, but Redcentric also said that it is looking for acquisitions to add scale to the business. Read more…

The former CFO of  MSP Redcentric has been found guilty of making misleading financial statements.

Ex-CFO Timothy Coleman has been found guilty of four charges for making false and misleading statements to the market after Redcentric overstated its cash position in results published in 2016 and will be sentenced in March.

Former finance director Estelle Croft was sentenced to three years’ imprisonment prior to the trial at Southwark Crown Court after pleading guilty to charges of making false statements and false accounting, and making false statements to Redcentric’s auditors PwC.

She was ordered to pay £120,346.70 following confiscation proceedings.

A third defendant, former CEO Fraser Fisher – who stepped down from the position at the end of 2017 – was acquitted by the jury on all charges. Read more…

MSP Redcentric’s sales and adjusted operating profit slip for the six months ending 30 September.

Total revenue slipped by 4.1 percent to £44.3 million compared with the same period last year while adjusted operating profit fell from £7.6 million to £7.4 million, a fall of 2.6 percent. Its adjusted basic earnings per share fell from 3.61p to 3.55p year-on-year, while recurring monthly revenue dropped from £41 million to £39.6 million and adjusted EBITDA decreased from £12.3 million to £11.9 million.

The outfit’s CEO Peter Brotherton said the business is still seeing “aftershocks” from the COVID-19 pandemic. Read more…

Managed services provider (MSP) Redcentric has given up looking for a new owner after several months of failed talks.

The firm had indicated in September that it was exploring a sale as it looked to ensure that it could continue to deliver value to shareholders.

Redcentric apparently chatted to Macquarie Principal Finance, UK branch and Six Degrees Holdings but these talks went nowhere.

“The board has held constructive discussions with a significant number of interested parties. However, these discussions did not materialise into any fully funded offers. Redcentric, therefore, announces that the board has decided to terminate the formal sale process with immediate effect”, the firm stated. Read more…

Troubled MSP Redcentric has confirmed that it is considering a sale saying that 2020 left it in an “excellent position to explore further opportunities to increase value for its shareholders”.

It did say that it was also considering its own M&A and organic growth as other means in which to increase this value.

“The board of Redcentric notes the recent media speculation and confirms that it has initiated limited discussions with third parties with a view to seeking a potential purchaser or purchasers for the company. Whilst a potential offer for the company may be the outcome of a formal sale process, the company is alternatively evaluating potential options in relation to organic growth and/or potential acquisitions that might be made by the company”, the company said. Read more…

Redcentric has posted a rise in full-year profits but has told shareholders it did not sell nearly enough product.

The MSP saw revenue tumble 4.4 percent to £100 million in its year ending 31 March 2018 and some of this was due to  trimming its headcount from 387 to 347 during the course of the year ensured adjusted EBITDA rose 4.7 percent to £18.1 million.

Chairman Chris Cole said Redcentric was now in a “much stronger position” and has “maintained its principal customer base”.

Historical issues with billing and collection have been addressed, and net debt has been slashed from £39.5 million to £27.7 million year on year, he said.

It said that it had lost some public sector hosting customers who are moving out of its data centres into government-backed facilities. It now expects revenues and EBITDA for its current year to fall by five percent and ten percent respectively, against previous estimates.

“Whilst profitability has improved, revenue has declined a little, and this remains the biggest challenge for the group”, Cole said.

“The management team is focused on growing the business and new appointments at the operating board level have been made to strengthen the sales function and drive future growth initiatives.”

Chris Jagusz was appointed CEO nine months ago said that the “business did not sell enough” during the year to generate revenue growth.

It did get the Yorkshire and Humber Public Services Network framework contract, which is its “biggest revenue opportunity” in its history with revenue reaching a potential £20 million per annum.

Troubled reseller Redcentric has hired a troubleshooter to help pull its nadgers out of the fire.

Chris Jagusz has been appointed chief executive of Redcentric and given the task of turning around the reseller’s fortunes.

For those who came in late, in 2016, the discovery of “misstated accounting balances” in Redcentric’s balance sheet prompted the firm to begin a forensic review and spanked the firm’s bottom line.

Jagusz, who has senior experience at Azzurri Communications, SSE Telecoms, Daisy and BT going back to 1988, will look to get the firm back to its previous industry form.

The job is a bit of a poisoned chalice. Redcentric’s will have to return to profit while minimising any reputational damage from ongoing Financial Conduct Authority and Financial Reporting Council investigations.

Chris Cole, Redcentric’s chairman, said: “We are delighted to be able to announce the appointment of Chris as chief executive. He has an outstanding record of accomplishment in telecoms and as a business leader.  The board is confident he is the right person to take Redcentric forward.”

Redcentric also stated that its performance for the six months to 30 September has been “in line with management expectations”. It said substantial progress has been made with reducing the net debt position to £33.3million, which is ahead of management’s expectations. This due to “strong operating cashflows reflecting improved trade debtor collections and working capital management.”

The CEO of Redcentric has resigned in the middle of the company’s issues with its legacy accounting.

Fraser Fisher will step down in 31 December 2017 so that he can provide a handover with his yet-to-be appointed successor.

The company’s share price has fallen by two thirds last November after it warned it would have to write down historic profits after discovering “misstated accounting balances” in its balance sheet.

Redcentric said in June that it had put a “challenging period” behind it after hitting revised financial targets, with annual revenue reaching £104.6 million.

In February, the firm became the sole supplier on a significant contract which forms part of the Health and Social Care Network, which replaces the N3 national private network.

According to a stock exchange notification, Fisher is leaving to “pursue other interests”.

Redcentric chairman Chris Cole said: “On behalf of the board, I would like to thank Fraser for his loyal service to the company for the past 14 years and for his leadership of the business in the recent difficult times and wish him well for the future.”